Crowdfunding as Financial Option for Small and Medium Enterprises (SMEs) in Nigeria

abdul rashid abdullah, Kazaure Mansur Ahmad



Small and medium scale enterprises (SMEs) act as a promoter of economic development of the developed and under developed nations. Developing countries like Nigeria that, require sustainable economic growth and development must pay attention to the SMEs sectors in order to reduce unemployment, poverty and improve the standard leaving of its society. Unfortunately, in Nigeria, SMEs have underperformed despite that, 90% of the Nigerian businesses are small scales but their contribution to the Nigerian GDP is below 10%. The main reason for this low contribution of SMEs to Nigerian GDP could be attributed to poor funding, lack of management expertise and lack of access to modern technology among others, with proper finance the SMEs can acquire modern technology and employed qualified staff.  Thus, this paper focuses on crowdfunding as financial option for small and medium enterprises in Nigeria. However the paper is based on conceptual framework.



Keywords: SMEs, Financial option, Crowdfunding, Crowdfunding framework

Full Text:




Abdullah, A. (2016). Crowdfunding As An Emerging Fundraising Tool : With Special Reference to The Malaysian Regulatory Framework. Islam and Civilisational Renewal, 7(1), 98–119.

Achua, J.K. (2008). Corporate social responsibility in the Nigerian banking

system: society and business review 3(1) 21

Aremu, M. A., and Adeyemi, S.L. (2011) Small and Meduim Scale Enterprises as A survival strategy employment generation in Nigeria. Journal of sustainable development, 4(1)

Ayozie, D. U., Oboreh, J. S., Umokoro, F., & Ayozie, V. U. (2013). Small and Medium Scale Enterprises (SMEs) in Nigeria: the Marketing Interface. Global Journal of Management and Business Research Marketing, 13(9), 1–13.

Barbi, M., & Bigelli, M. (2017). Crowdfunding practices in and outside the US. Research in International Business and Finance, 42(July 2016), 208–223.

Callaghan, C. W. (2014). Crowdfunding To Generate Crowdsourced R&D: The Alternative Paradigm Of Societal Problem Solving Offered By Second Generation Innovation And R&D. International Business & Economics Research Journal, 13(6), 1499–1514.CBN (2011)

Eniola, A. A., & Entebang, H. (2015). SME Firm Performance-Financial Innovation and Challenges. Procedia - Social and Behavioral Sciences, 195, 334–342. Financail Development (2011)

Gbandi, E. C., & Amissah, G. (2014). Financing options for small and medium firms (SMEs) in Nigeria. European Scientific Journal, 10(1), 327–340.

Golić, Z. (2014). Advantages of Crowdfunding As an Alternative Source of Financing of Small and Medium-Sized Enterprises. Зборник Радова Економског Факултета У Источном Сарајеву, 1(8), 39.

Gompers, P., & Lerner, J. (2001). The Venture Capital Revolution. Journal of Economic Perspectives, 15(2), 145–168.

Kuppuswamy, V., & Bayus, B. L. (2017). Journal of Business Venturing Does my contribution to your crowdfunding project matter ? Journal of Business Venturing, 32(1), 72–89.

Mungcal, I. (2011). AFDB approves finance for Nigeria SMEs. The

Development newswire

Muritala, T. a., Awolaja, A. M., & Bako, Y. a. (2012). Impact of Small and Medium Enterprises on Economic Growth and Development. American Journal of Business and Management, 1(1), 18–22.

NBS. (2016). National Bureau of Statistics. Abuja, Nigeria.

Obamuyi, T. M. (2009). Credit delivery and sustainability of micro‐credit schemes in Nigeria. Journal of Enterprising Communities: People and Places in the Global Economy, 3(1), 71–83.

Ogujuiba, K. K., Ohuche, F. K. & Adenuga, A. O. (2004). Credit Availability to small and medium scale enterprises in Nigeria: The importance of new capital base for banks-working paper Retrieved on the 23 of June 2011

Olaitan, M. A. (2006). Finance for SMEs: Nigerias’ agricultural credit Guarantee scheme fund. Journal of international farm management 3(2) 9

Oreoluwa, R. (2011). Small and medium scale enterprises and economic growth in Nigeria : An assessment of financing options. Pakistan Journal of Business and Economic Review, 2(1), 78–97.

Paschen, J. (2017). Choose wisely: Crowdfunding through the stages of the startup life cycle. Business Horizons, 60(2), 179–188.

Riley-Huff, D. A., Herrera, K., Ivey, S., & Harry, T. (2016). Crowdfunding in libraries, archives and museums. The Bottom Line, 29(2), 67–85.

Roma, P., Messeni Petruzzelli, A., & Perrone, G. (2017). From the crowd to the market: The role of reward-based crowdfunding performance in attracting professional investors. Research Policy, 46(9), 1606–1628.

Soludo, C. C. (2008). Makin finance work for the poor. A convocation Paper.

Suhaili, N. A., & Palil, M. R. (2016). Crowdfunding: a Colaborative Waqf Based Internet Platform. International Jurnal of Business, Economics and Law, 11(5), 41–46.

Yu, S., Johnson, S., Lai, C., Cricelli, A., & Fleming, L. (2017). Crowdfunding and regional entrepreneurial investment : an application of the CrowdBerkeley database ☆. Research Policy, 46(10), 1723–1737.

Vanguard (2016). Nigeria ranks No 1 in internet usage in Africa



  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The Pertanika Journal of Scholarly Research Reviews, (e-ISSN: 2462-2028, ISSN: 2636-9141) published by Universiti Putra Malaysia Press